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E-commerce adoption by SMEs in developing countries: evidence from Indonesia

Author

Listed:
  • Rita Rahayu

    (University of Huddersfield
    Andalas University)

  • John Day

    (University of Huddersfield)

Abstract

This study aims to provide an overview of e-commerce adoption by SMEs in developing countries and, in particular, the extent of the adoption of e-commerce by Indonesian SMEs. It identifies the e-commerce benefits realized by these SMEs and investigates the relationship between the levels of e-commerce adoption and the benefits thus realized. The study was motivated by the limited studies related to e-commerce adoption by SMEs, especially in developing countries. In addition, it seems that most e-commerce studies are focused more on upstream issues: to see the factors that facilitate, or barriers faced regarding e-commerce adoption, rather than downstream issues: to see post-adoption benefits. This certainly limits our understanding about e-commerce adoption by SMEs in developing countries, as well as the post-adoption benefits of e-commerce. Indonesia was chosen as the place in which to conduct the study. A survey of 292 SMEs shows that the majority of them are still at an early stage in their adoption of e-commerce. Their use of e-commerce is dominated by marketing and purchasing and procurement activities. “Extending market reach”, “increased sales”, “improved external communication”, “improved company image”, “improved speed of processing”, and “increased employee productivity” are reported as the top six e-commerce benefits perceived by these SMEs. This study also shows that SMEs at the higher level of e-commerce adoption experience greater e-commerce benefits than those at other levels of adoption.

Suggested Citation

  • Rita Rahayu & John Day, 2017. "E-commerce adoption by SMEs in developing countries: evidence from Indonesia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 25-41, April.
    • Handle: RePEc:spr:eurasi:v:7:y:2017:i:1:d:10.1007_s40821-016-0044-6
    DOI: 10.1007/s40821-016-0044-6
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    References listed on IDEAS

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    Cited by:

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    11. Ali Abbas & Sahadah Hj. Abdullah* & Rosli Mohd Saad, 2018. "Affecting Factors to Intentions to Adoption of E-Commerce Technologies in SMEs of Pakistan," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 147-155:4.
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    15. Sunday C. Eze & Vera C. A. Chinedu-Eze & Hart O. Awa, 2021. "Key Success Factors (KSFs) Underlying the Adoption of Social Media Marketing Technology," SAGE Open, , vol. 11(2), pages 21582440211, April.
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    17. Alaa Manea Lafta & Durgham Ibrahim Kadhim & Sabeeh Nadhim Matrood, 2023. "The Impact of E-marketing on the Quality of Services Provided to the Customer in Light of the Competitive Advantage," Journal of Scientific Reports, IJSAB International, vol. 5(1), pages 78-87.
    18. Miftahurrohman Miftahurrohman & Eko Sediyono & Albert Kriestian Novi Adhi Nugraha, 2022. "The Model of the Sustainability of E-commerce Adoption: A Study on Carved Furniture SMEs in Indonesia," Technium Social Sciences Journal, Technium Science, vol. 30(1), pages 466-483, April.
    19. Lili Li & Linyi Zheng & Zhonggen Zhang & Yixiang Song, 2024. "How to trigger and strengthen the positive impact of the internet on the income of farmers in the region? A case from China," Electronic Commerce Research, Springer, vol. 24(2), pages 1407-1433, June.
    20. Onkar Nath Mishra & Saurabh Gupta, 2020. "Antecedents and Impact of E-commerce Adoption among New Venture Firms: Evidence from Tourism and Hospitality Industry," Vision, , vol. 24(4), pages 431-440, December.
    21. Dorel Mihai Paraschiv & Adrian Cantemir Calin & Oana Cristina Popovici & Gerard Cazabat, 2019. "A Contemporaneous Statistical Note on E-Commerce Adoption in Romania – Based SMEs," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(50), pages 177-177, February.
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    23. Tatik Suryani & Abu Amar Fauzi & Margaret L. Sheng & Mochamad Nurhadi, 2024. "Developing and testing a measurement scale for SMEs’ website quality (SMEs-WebQ): Evidence from Indonesia," Electronic Commerce Research, Springer, vol. 24(3), pages 1763-1794, September.

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    Keywords

    E-commerce; SMEs; Benefits;
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